đš Following the recent approval of Ethereum ($ETH ) spot exchange-traded funds (ETFs), Geoffrey Kendrick, an analyst at Standard Chartered, has indicated that the next wave of crypto ETFs could emerge by 2025.
âFor other coins (e.g., Solana, XRP), markets will look ahead to their eventual ETF status as well, albeit this is likely a 2025 story, not a 2024 one,â said Kendrick, Head of EM FX Research, West, and Crypto Research at Standard Chartered Bank, in a statement to The Block on Friday, May 24.
The approval of Ethereum spot ETFs on Thursday suggests that the Securities and Exchange Commission (SEC) does not classify ETH as a security. This development hints that other cryptocurrencies with similar characteristics to ETH, such as those scrutinized in the 2023 $XRP case, might also escape being labeled as securities, Kendrick explained.
âIn several cases, the core technology is so similar to ETH that it would be difficult for the SEC to claim they were securities given the ETH position,â Kendrick noted. âThe crypto industry now seems to have political backing on both sides of the aisle.â
The Head of Forex and Digital Assets Research described this bipartisan support in the U.S. as a âtrue watershed momentâ for the crypto industry, emphasizing that the pertinent question now is not if but when the market will witness further regulatory changes.
More analysts predict a Solana ETF
Brian Kelly ignited a debate on crypto X on Wednesday by suggesting that Solana ($SOL )Â could be the next cryptocurrency to secure a spot exchange-traded fund in the United States.
Kelly made his prediction during the CNBC post-market talk show Fast Money on May 22. âThe trade now is, whoâs next?â asked Kelly, who is also the founder and CEO of the BKCM Digital Asset Fund.
âYouâve got to think about Solana as probably the next one. Bitcoin, Ethereum, and Solana are probably the big three for this cycle.â
Nate Geraci, president of The ETF Store, believes a spot Solana ETF wonât materialize until a Solana futures product is listed on the Chicago Mercantile Exchange or until Congress establishes a comprehensive cryptocurrency regulatory framework. So far, only Bitcoin ($BTC) and futures have received approval in the U.S.
Bloomberg ETF analyst James Seyffart echoed Geraciâs sentiments, predicting that such a development would occur âwithin a few yearsâ of establishing a Commodity Futures Trading Commission-regulated market.
Seyffart also suggested that a spot Solana ETF would attract more demand than any other digital asset outside of Bitcoin and Ether. However, he cautioned that SEC Chair Gary Gensler has previously flagged Solana as a security in lawsuits against Coinbase and Kraken, which could complicate future applications.
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